Colleagues in the conference room. Others in the living room. Hybrid work made meetings even worse. Now Microsoft, Google, Zoom and others are trying to fix it.
4 min
To the people I just had a very important meeting with:
I tried to take you all seriously. I really did. Except since I’m at home, watching you all crowded into a conference room, the effect was more like toy figures sitting around Polly Pocket’s kitchen table. I spent most of the time imagining picking you up with tweezers then zipping you into my change purse.
Please don’t call HR.
Best,
Me
Welcome to the hell of the hybrid meeting. Throw in the related side effects—office-people often ignoring the video-call people and that guy who always forgets to mute—and you’re left longing for the simpler times of toilet-paper shortages, double-masking and all-day Zoom.
The solution? Ask Elon Musk and it’s butts-in-seats for all. Employees of SpaceX and Tesla are expected to spend at least 40 hours in company offices. Yet the hybrid model has emerged as the leading choice for many companies, with 42% of people with remote-capable jobs working partly at home and 39% working entirely from home, according to a February 2022 Gallup poll.
The more likely solution? Tech features that help us adapt to this new new normal—just like they helped us adapt to the old new normal. Microsoft, Google, Zoom and others have some of their finest working to fix the greatest problem of our time: How we meet to talk about work stuff.
The solutions below won’t fix everything. But there are big developments coming, along with creative—and some free—options you can start trying with your colleagues right now.
The primary rule of hybrid meetings: Create equity among attendees—or, you know, don’t make your people go all Hunger Games. How to do that? With laptops, of course.
“Making laptops a required tool for all participants in a hybrid meeting helps level the playing field,” Angela Henderson, a meetings expert at Decisions, a startup that makes meeting management software, told me.
If people in the conference room turn on their laptop webcams, the people at home can see everybody’s face framed individually like during Covid times. This is better than some impersonal, drone-like conference-room view, especially when people in that room are talking. Microsoft, Google and other companies have started encouraging their employees to do this.
Of course, all those laptops on the same video call in the same room will create more ear-piercing feedback than a Kiss concert sound check. Avoid that by joining the call from your conference room’s audio/video system, then get everyone on laptops to mute their mics and kill their speaker volume before signing into the meeting.
If you use Microsoft Teams or Google Meet, you can log into the meeting from the conference room using a companion setting. (Google’s version is Companion Mode, Microsoft’s is Companion Device Experience.) Both automatically cut off your laptop’s mic and speakers while allowing you to turn on your webcam and access other virtual tools, including screen sharing, group chats and hand raising.
To make things feel more fair, Teams can line up people at home on the conference-room screen at eye level with a setting called Front Row.
The trouble with using your laptop’s webcam in the conference room is you don’t know where to look. At the webcam? At your colleague across the table, which gives everyone at home a nice view of your nostrils? At the wall?
“Conference rooms need to be rethought as hybrid spaces,” Greg Baribault, group program manager on Microsoft Teams, told me. And new systems combine updated conference-room camera technology with software from the most popular video-calling platforms, including Zoom, Google Meet and Microsoft Teams.
For example, Microsoft Teams works with other camera systems, such as Logitech’s Rally Bar. Instead of that drone-like view, the systems use artificial intelligence to isolate the people speaking and show them on screen as if they were individual participants in the meeting. No laptop webcam needed.
Zoom’s Smart Gallery works similarly. On supported cameras, it can create individual video feeds of each person in the room, and will even pan as people move. Yep, Google’s Meet works with similar conference-room offerings, too.
Now, if I’m the CEO, I’m thinking: “Uh uh. Nope. Have you seen this record inflation?” Yet the cost of conference-room A/V equipment is coming down.
Five years ago it could “cost you $20,000 to $50,000 and take three days” to redo a conference room with equipment, Logitech Chief Executive Bracken Darrell told me. Now it takes less than an hour to set up these newer, sub-$5,000 cameras, he said.
Or maybe, just maybe, the solution is completely virtual conference rooms. You know, we sit around virtual tables, our virtual legless avatars sipping virtual coffees.
Yes, I’ve attended metaverse meetings. I’ve put on a Meta Quest 2 headset and launched Meta’s Horizon Workrooms app, only to find my editor as an avatar resembling Milhouse from “The Simpsons,” cursing the tech. And I still have no idea what’s up with the virtual deer head on the wall!
Meeting in VR right now is a mess of uncomfortable headsets, flaky apps and real-world physical obstacles. But there is potential. Once we got the tech issues straightened out in that meeting with my editor, we had a lively and engaging conversation where it felt like I was really sitting across from him. (Too bad I’ll have to bribe him with non-virtual sushi to ever do it again.)
When hopping into a metaverse meeting is as easy as hopping into a Zoom call or Google Meet today, and my ears don’t feel like they have been crushed under the weight of a nerd helmet, then, sure, have your avatar call my avatar!
But in the real-verse, I have found the most promising solution of all: “There’s no better way to combat issues with hybrid meetings than to just not have as many of them to begin with,” Ms. Henderson said.
Precisely! So everyone step away from the laptop and ask yourselves: Could this meeting I’m about to schedule be an email? A Slack? A phone call? A text? Or a GIF of an angry Milhouse from “The Simpsons”?
Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 15, 2022.
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What a quarter-million dollars gets you in the western capital.
Alexandre de Betak and his wife are focusing on their most personal project yet.
Office-to-residential conversions are gaining traction, helping revitalize depressed business districts
4 min
Developer efforts to convert emptying office towers into residential buildings have largely gone nowhere. That may be finally changing.
The prospect of transforming unused office space into much-needed housing seemed a logical way to resolve both issues. But few conversions moved forward because the cost of acquiring even an aging office building remained too high for the economics to pencil out.
Now that office vacancy has reached record levels, sellers are willing to take what they can. That has caused values to plunge for nothing-special buildings in second-rate locations, making the numbers on many of those properties now viable for conversions.
Seventy-three U.S. conversion projects have been completed this year, slightly up from 63 in 2023, according to real-estate services firm CBRE Group. But another 309 projects are planned or under way with about three-quarters of them office to residential. In all, about 38,000 units are in the works, CBRE said.
“The pipeline keeps replenishing itself,” said Julie Whelan , CBRE’s senior vice president of research.
In the first six months of this year, half of the $1.12 billion in Manhattan office-building purchases were by developers planning conversion projects, according to Ariel Property Advisors.
While New York, Chicago and Washington, D.C., are leading the way, conversions also are popping up in Cincinnati, Phoenix, Houston and Dallas. A venture of General Motors and Bedrock announced Monday a sweeping redevelopment of Detroit’s famed Renaissance Center that includes converting one of its office buildings into apartments and a hotel.
In Cleveland, 12% of its total office inventory is either undergoing conversions or is planned for conversion. Many projects there are clustered around the city’s 10-acre Public Square. The former transit hub went through a $50 million upgrade about 10 years ago, adding fountains, an amphitheater and green paths.
“You end up with so much space that you paid so little for, that you can create amenities that you would never build if you were doing new construction,” said Daniel Neidich, chief executive of Dune Real Estate Partners, a private-equity firm that has teamed up with developer TF Cornerstone to invest $1 billion on about 20 conversion projects throughout the U.S. in the next three years.
Conversions won’t solve the office crisis, or make much of a dent in the U.S. housing shortage . And many obsolete office buildings don’t work as conversion projects because their floors are too big or due to other design issues. The 71 million square feet of conversions that are planned or under way only account for 1.7% of U.S. office inventory, CBRE said.
But city planners believe that conversions will play an important part in revitalising depressed business districts, which have been hollowed out by weak return-to-office rates in many places.
And developers are starting to find ways around longstanding obstacles in larger buildings. A venture led by GFP Real Estate is installing two light wells in a Manhattan office-conversion project at 25 Water St. to ensure that all the apartments will get sufficient light and air.
Cities such as Chicago, Washington, D.C., and Calgary, Alberta, have started to roll out new subsidies, tax breaks and other incentives to boost conversions.
The projects are breathing new life into iconic properties that no longer work as office buildings. The Flatiron Building in New York will be redeveloped into condominiums. In Cincinnati, the owner of the Union Central Life Insurance Building is converting it into more than 280 units of housing with a rooftop pool, health club and commercial space.
In the first couple of years of the pandemic, office building owners were able to hold on to their properties because of government assistance and because tenants continued to pay rent under long-term leases.
As leases matured and demand remained anaemic, landlords began to capitulate and dump buildings at enormous discounts to peak values. In Washington, D.C., for example, Post Brothers last year paid about $66 million for 2100 M Street, which had sold for as much as $150 million in 2007.
Washington, D.C., has been particularly hard hit by the office downturn because the federal government has been especially permissive in allowing employees to work from home .
“We’re able to make it work as a conversion because it was no longer priced as though it could be repositioned as office,” said Matt Pestronk , Post’s president and co-founder.
Increasingly, more deals are taking place behind the scenes as converters reach deals with creditors to buy debt on troubled office buildings and then push out the owners. GFP Real Estate reduced costs of its $240 million conversion of 25 Water Street by buying the debt at a discount and cutting deals with tenants to exit the building before their leases matured.
One of the first projects planned by the venture of Dune and TF Cornerstone likely will be the Wanamaker Building in Philadelphia. TF Cornerstone just purchased the debt on the office space in the building and is in the process of taking title.
“The banks are foreclosing and doing short sales,” said Neidich, Dune’s CEO. “There’s a ton of it going on.”
In Washington, D.C., a conversion of the old Peace Corps headquarters building near Dupont Circle is 70% leased just four months after opening, said developer Gary Cohen . Rents are higher than expected.
“If that’s the way to get people downtown, that’s what we have to do,” Cohen said.
Not all developers agree that the economics of conversions work, even at today’s low prices. Miki Naftali , who has converted more than five New York properties over the years, said he has been very actively looking at conversion candidates but hasn’t yet found a deal that works financially.
One of the issues facing converters is that even if an office building is dying, it often has a few existing tenants who would need to be relocated. Some buildings would need atriums to ensure that all the apartments have sufficient light and air.
“When you start to add everything up, if your costs get close to new construction, that’s when you get to the point that it doesn’t make financial sense,” Naftali said.
Some landlords are including clauses in leases that give them the right to evict tenants to make room for a major conversion. Others are keeping a small ownership stake when they sell buildings so that they can learn the conversion process for future buildings.
“The world is looking at these assets in a different way,” said developer William Rudin , whose company decided to learn the conversion process by keeping a stake in 55 Broad Street, a downtown New York office building it sold last year to a converter.
